Programs: BA Gold; FB Plt; LH Sen // HH Dia; HYG Dia; IC RoyAm; SPG Plt
Posts: 3,190
An article in German.
The buyer of the airline is Rudolf Wöhrl - a well-known company in Germany in the textile industry. He already founded Nürnberger Flugdienst in 1974. Eurowings became a result of Nürnberger Flugdienst later.
He buys dba for 1 EUR and BA will give the money for leasing the planes for 1 year. In case dba makes a profit, BA will get 25% until 2006.
Indeed good to see that BA withdraws from an almost never-ending story with huge losses from the very beginning.
Programs: AA, BA, BD, MCC, Mucci: Sir Roger des Directions Routieres, PCR
Posts: 7,984
Today's Guardian says:
BA has effectively had to pay Mr Wohrl to take on the airline. The sale is conditional on BA making a £25m investment in the business and footing the £2m-a-month leasing bill for its 16 airctaft for a year.
Today's Financial Times says:
The exit ... will cost BA about €71m (£51m) in further financial support to DBA
Hmmm, more 'investment' in an airline apparently going nowhere.
Not my idea of making a profit, but the irony detector is switched on, QF WP, so I know where you're coming from!
The silver linings to this are that DI/BA have received something like £7m from EZY since the now-defunct option agreement was signed, EZY must have found its own good reasons for not going through with the purchase barely 2 months ago and writing off £9.2m itself, BA must have been losing money in DI at a rate of the same order of magnitude as the commitment to invest over the next year, they would probably have had to write off a similar amount if they had just shut DI now, and if the purchasers can bang some sense into the airline between now and 2006 BA will get some money back. "Best of a bad job" springs to mind.
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